Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Credit Cards & Reward Programs
#1
Lately, i've been shopping for a new credit card. In my lifetime, i've opened 3-4 credit cards. 1-2 of which are now closed. I'm now worried, those 2 short term credit cards have affected my credit score. I've only been using credit cards for 4-5 years. Last time i checked, i was good, that was before closing the 1-2 accounts? Now that i think about it, i think i did close 2 credit card accounts. 1 was Amazon, and the other was U.S. Bank. Recently, i took advantage of the Ebay mastercard rewards program. Right now i have 2 credit cards (other is Wells Fargo platinum). I've had the Wells Fargo card the longest, and i heard closing a long term card can hurt my score, so i'm thinking about keeping the card for emergency use only, and opening a Citi Bank "Citi Forwardsm" credit card for college students. I heard citi has a really good rewards program. I've never missed a late payment and i have good history. Do you think having 3 credit cards and 2 closed credit cards will be ok? I'm thinking about reopening my Amazon Card, since i do a crap load of shopping there more then i do on Ebay. Maybe reopening is a bad idea?

I'm also thinking about closing my Wells Fargo checking/Savings account with them and opening up an account at Chase Bank or Umpqua. I'm not happy with Wells Fargo, there a pain in the butt. Would this also effect my credit score in so way? Oh, and i've done 2 overdraft with my debit card...eeek, i know.
07 SE KC 4x4 6M M226 3.538 10"R/10"F Wheel Travel
Volant CAI
SuperChip Tuned
FlowMaster Delta 50 2.25" 2 in 1 out Y-Pipe
PRG Frontier Titan Swap 4" Lift In Front; 2.0 Radflos, SPC UCA
Shackle/Leaf/Bilstein - 3" Lift In Rear
Rock Sliders And Shrockworks Skid Plate Set

285/75/16 Goodyear Wranglers
Reply
#2
Any change in credit will affect your score.

Check your credit report at least once a year, read this http://www.ftc.gov/bcp/edu/pubs/consumer...cre34.shtm

then go to http://www.creditcards.com/ and compare the credit cards out there to pick the best one for your purpose
[Image: 3gears.gif]06 CC 4X2 6sp Avalanche White NISMO SPORT[Image: drive.gif]
[Image: 43d20b1b.jpg]
Click on the picture for my Frontier thread
Reply
#3
I've got the Amazon Visa rewards card and another Visa that has gone from Providian, to WaMu to now Chase that has pretty good rewards as well.

Closing your oldest credit account will hurt your credit score a lot as it will shorten the length of your credit history. Opening and closing accounts frequently will hurt your score. Requesting accounts, even if denied, frequently will hurt your score. Also do NOT be late paying any bills, credit card, cellphone, utilities, etc. Regular late payments will decrease your score.

The best thing to do is to have a small amount of cards, pay at least the minimum (totally off if possible) each month, use them occasionally so you create a history of purchases and payments and stay below your credit line (having a 3K balance on a card with a 4K limit regularly will hurt your score).
Reply
#4
Alright, thanks phelan. I'll keep my oldest card for emergency use, and maybe pull it out once a year to make a purchase i can pay off right away.

So i've spent nearly $200 on my ebay card already...had it for a week. Paid it all off already.
Need to pay off my Wells Fargo Card next week and store that away.
Going to close my checking/savings at wellsfargo and head next door to umpqua, and open up an account there.
Apply for a Citi Credit Card for the rewards program and start using that and make my ebay a secondary all purpose use card.
I'm still contemplating on whether or not to re-open my Amazon credit card account. I don't want to hurt my score, probably already did since the only reason i bought the card is to take advantage of the $30 and then close it up after i paid it off, hahaha.



I've decided to pass up on the Amazon card...would make my credit score/history look bad if i re-opened it. The Citi Card is just as good, so what's the point...
So i've thought this through, it's going to be around 12% APR on my Citi card but i'll be using that only if i know i could pay it off in time. And i'll be using my wells fargo card which is around 8% APR for the big purchases that worry me. I've heard some people with APR cards from like Chase that are as low as 4.25% APR...but the thought of having too many cards scare me. Thinking about closing my e-bay card..................but closed my amazon card like 2 years ago...you think it'll be ok?
07 SE KC 4x4 6M M226 3.538 10"R/10"F Wheel Travel
Volant CAI
SuperChip Tuned
FlowMaster Delta 50 2.25" 2 in 1 out Y-Pipe
PRG Frontier Titan Swap 4" Lift In Front; 2.0 Radflos, SPC UCA
Shackle/Leaf/Bilstein - 3" Lift In Rear
Rock Sliders And Shrockworks Skid Plate Set

285/75/16 Goodyear Wranglers
Reply
#5
Consumer Reports Money Adviser has a page one story on protecting your credit score in the August 2009 issue. It says do not close your oldest account or any account that has a high credit line and a low balance as they will both hurt your rating. Also having too many credit cards can hurt you. Dave Ramsey says to tear up all credit cards and go on a cash basis.

I disagree with him because I use my credit card every month and pay off the balance as it comes due. I get a cash rebate and have gotten back several hundred dollars over the past few years as well as getting to use their money for free for 3 or 4 weeks each month. I fail to see a down side to this in spite of what Dave Ramsey says.

The key is to pay your cards off every month as they come due.

OkieScot
Reply
#6
(07-12-2009, 08:58 PM)OkieScot Wrote:  Consumer Reports Money Adviser has a page one story on protecting your credit score in the August 2009 issue. It says do not close your oldest account or any account that has a high credit line and a low balance as they will both hurt your rating. Also having too many credit cards can hurt you. Dave Ramsey says to tear up all credit cards and go on a cash basis.

I disagree with him because I use my credit card every month and pay off the balance as it comes due. I get a cash rebate and have gotten back several hundred dollars over the past few years as well as getting to use their money for free for 3 or 4 weeks each month. I fail to see a down side to this in spite of what Dave Ramsey says.

The key is to pay your cards off every month as they come due.

OkieScot

Thanks OkieScot, i do pay off my credit cards each month. My Wells Fargo card is not going to be closed. Funny thing. My credit line is still 1,400 with Wells Fargo, but my Ebay line is 4,500....Wow! Now i'm afraid of closing the account...but at the same time i really don't want it at all, i even cut up the card yesterday so i wouldn't be able to use it.
07 SE KC 4x4 6M M226 3.538 10"R/10"F Wheel Travel
Volant CAI
SuperChip Tuned
FlowMaster Delta 50 2.25" 2 in 1 out Y-Pipe
PRG Frontier Titan Swap 4" Lift In Front; 2.0 Radflos, SPC UCA
Shackle/Leaf/Bilstein - 3" Lift In Rear
Rock Sliders And Shrockworks Skid Plate Set

285/75/16 Goodyear Wranglers
Reply
#7
The downside to it Okie is I'd say roughly 99.99% of the populace doesn't have the self control and sense of responsibility to do that. If you can routinely pay your balance off every month credit cards are great tools both in day to day life and for improving your credit score.
Reply
#8
(07-12-2009, 10:04 PM)Phelan Wrote:  The downside to it Okie is I'd say roughly 99.99% of the populace doesn't have the self control and sense of responsibility to do that. If you can routinely pay your balance off every month credit cards are great tools both in day to day life and for improving your credit score.

I guess i'm part of the 99.99% Tongue Since i never made a late payment on my credit card. I used to constantly use my debit, but since i'm trying to build credit, i might as well just use the credit card. It's not that hard to transfer $ from checking to the credit card.

I admit, i have missed some phone/cable payments and twice i've done an overdraft, both within dimes and nickles.
I missed one phone payment, because i thought i had payed it off.
I missed 2 cable/internet payments, since the freaking company isn't sending me the bill on time, and i smell another late payment coming on. Thinking about going to AT&T.
That's about it, other than dropping US Bank....actually i can't recall if i had a credit card or not, i don't think my dad wanted me to get one, so the only credit card i dropped was Amazon, and soon i'll be canceling my e-bay...

This is my bad credit history ^^^^^_^


Well, i got an account at UMPQUA, and while they were doing my credit check, i was eligible for some kind of credit access thing, where it's similar to a credit card but it isn't, but you have access to $3,500.00? She was impressed, and said like 1 out of 10 people are approved.
07 SE KC 4x4 6M M226 3.538 10"R/10"F Wheel Travel
Volant CAI
SuperChip Tuned
FlowMaster Delta 50 2.25" 2 in 1 out Y-Pipe
PRG Frontier Titan Swap 4" Lift In Front; 2.0 Radflos, SPC UCA
Shackle/Leaf/Bilstein - 3" Lift In Rear
Rock Sliders And Shrockworks Skid Plate Set

285/75/16 Goodyear Wranglers
Reply


Possibly Related Threads…
Thread Author Replies Views Last Post
  Debit or Credit? Sandiegan05fronty 12 9,310 02-12-2009, 02:51 AM
Last Post: balage
  Day time TV programs... Sandiegan05fronty 10 8,149 07-17-2008, 06:05 PM
Last Post: Firebreed

Forum Jump:


Users browsing this thread: 1 Guest(s)